Why Tax Hikes Aren’t The Answer To The Deficit Or Debt In Two Overly Simplistic Charts

Barack Obama wants $1.6 TRILLION in new revenue over the next ten years. Now that’s a lot of money…unless you’re talking about the federal deficit and/or the national debt. Unfortunately, those are exactly the things we’re talking about.

So, how much does this new revenue get you? Not much when this years budget deficit will be between $900 billion (assuming sequestration happens and the stars align) and…God knows how much. We’re not off to a good start.

Since the total tax hike is over 10 years, you can only count $160 billion against this year’s deficit.

RevenueVsDeficit

Oh my. That’s not much, is it?

Well, it’s far less compared to the $16 TRILLION + and growing federal debt.

RevenueVsDebt

Now that assumes the WHOLE tax hike that will only come in over 10 years AND that we stop adding debt TODAY. Considering Obama is looking for a hike in the debt ceiling and new spending….yeah.

Of course all of this assumes that a tax hike has no impact on how people manage their money or on economic growth not slowing further. Oh and spending staying at current levels. None of those things will happen. So this drop in the bucket of revenue won’t do anything about our deficit or debt (except likely make them worse).

Why, it”s almost as if all Obama cares about is wealth redistribution and destroying the GOP. Heck of a job America!

The only solution to our fiscal mess is a combination of spending cuts, entitlement reform and massive economic growth. Anything other than that…..

let it burn

 

 

 

 

About Drew

I blog about politics and hockey because I sort of understand those things. I'd blog about women but I'll never understand them.

Posted on December 4, 2012, in Uncategorized. Bookmark the permalink. 8 Comments.

  1. Drew – “let it burn” makes 100% sense to me. I personally feel that we are already too far past what we can do to improve our debt and deficit situation. Four more years just means four more layers of dirt on top of the coffin! Until this last election, I never thought I would argue against removing tax deductions on things like mortgage interest and 401Ks. Now? I want those things and more. I want our govt to do what they should have done a long time ago – burn it down and arise fro the ashes.🙂

  2. Obama’s tax rate increase solution equates to using a water pistol to extinguish an erupting volcano. Does he really believe the people are that stupid? On the other hand they reelected him so he probably does. There comes a time when you just say to hell with it and give up . . . I think we’re at that point. Yes, let it burn.

  3. My only hesitation about the Let It Burn strategy is after a period of chaos, people want stability no matter what the cost. The bad thing is it is going to burn, no matter what — Math is a cruel mistress. But conservatives should realize that it is very long odds you come up with anything like a constitutional republic after this one melts down. After the Weimar Republic came Hitler.

  4. Used to be a time when an organization of people would give this type of information to the masses so they could make informed decisions on their government. I think they were called reporters. Campaigns shouldn’t have to waste money to educate the voters on this stuff. News people should do their F’ing jobs.

  5. Yes, many people really are that stupid.

    Voting for Obama is the same as being over your head in debt (which the country is), and thinking the solution is just getting a new credit card (raising the debt ceiling) – then using the new credit card to rack up more debt (increased spending/new stimulus). Anyone with the slightest bit of sense knows how stupid that is, yet some people do it anyway.

    And yes, Obama may just be that stupid instead of (or in addition to) actively wanting to hurt the country. He has said before that He believes in Keynesian economics, and in the most extreme form debt counts as revenue.

    I’m willing to cut Him a little slack here – it could be that since He has never held a real job or had to take care of His own budget, maybe He really doesn’t know the difference. Or maybe His zeal to destroy those He sees as “the bad guys” is more important than things like that – maybe He is patriotic enough to think that the country can come back from anything.

    I’m not very optimistic though – considering how He continues to blame his failures on the 5% unemployment, 9T$ debt, and 480B$ deficit (of which only 120B$ came from Bush) that He inherited from the previous administration, how is He going to manage the 8% (or really more like 12-16%) unemployment, 16T$ debt, and 1.6T$ deficit that He is inheriting from Himself?

    I wish there was a better alternative, but maybe Let It Burn is the best we can do at this point😦

  1. Pingback: Ace of Spaces: Let It Burn | Moocher Central

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